Phinma cues P3.8-B spend program to back units’ projects
Phinma Corp. will spend P3.8 billion this year to support its subsidiaries’ pipeline projects, including affordable housing.
Phinma chair and CEO Ramon del Rosario Jr. said in a statement on Tuesday the budget would “better support [Phinma’s] business initiatives to uplift unserved families and communities.”
Del Rosario earlier confirmed they would enter the socialized housing space. In particular, there are two projects already set to rise in the cities of Davao and Bacolod.
This move was also meant to shift its focus away from the still-challenging mid-income market.
This came as Phinma logged a 16.7-percent decline in its bottom line. This settled at P191.27 million in the January to March period as its construction and property units continued to bleed.
Phinma on Tuesday said its revenues during the quarter climbed by 21 percent to P6.6 billion. This was thanks to Phinma Education Holdings Inc.
Enrollment for the second semester of the school year 2024 to 2025 rose by 5 percent to 137,498 students across Phinma Education schools. The retention rate was pegged at 89 percent.
As a result, the subsidiary’s earnings reached P907.35 million, up by 30 percent. Revenues likewise rose by 11.7 percent to P2.1 billion.
Meanwhile, the construction materials group composed of Union Galvasteel Corp., Philcement Corp., Union Insulated Panels Corp. and Phinma Solar Energy Corp. had combined revenues of P3.87 billion. This climbed by 27 percent on higher sales volumes.
However, the segment also suffered from higher operational costs and interest expenses related to its expansion plans. The unit swung to a net loss of P69.71 million from a net profit of P27.71 million in the same period last year.
A challenging real estate market also impacted Phinma Property Holdings Corp., which still bled in the first quarter. Still, its net loss had narrowed by 26 percent to P100.61 million.
The lower loss was attributed to new sales and carryover sales from last year. Revenues climbed by 30 percent to P411.96 billion.
